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FEDERAL RESERVE BANK O F N EW YORK r Circular No. 4 4 1 5 1 Fiscal Agent of the United States I January 24, 1957 J Offering of $1,700,000,000 of 91-Day Treasury Bills Dated January 31, 1957 Maturing May 2, 1957 T o all In corporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: Following is the text of a notice published today: TREASURY DEPARTM ENT W a s h in g to n F O R R E L E A S E , M O R N IN G N E W S P A P E R S , T h u r sd a y , J anu ary 24, 1957. T h e T r e a s u ry D epa rtm en t, b y this p u b lic n otice, invites ten ders fo r $1,700,000,000, o r th ereabouts, o f 9 1 -d a y T rea su ry bills, fo r ca sh and in e x ch a n g e fo r T r e a s u ry bills m a tu rin g J anu ary 31, 1957, in th e a m ou n t o f $1,601,624,000, to be issu ed on a d isco u n t basis under com p etitive and n on com p etitiv e b id d in g as h ereinafter provid ed . T h e bills o f this series w ill b e dated J a n u a ry 31, 1957, and w ill m a tu re M a y 2, 1957, w h en th e fa ce a m ou n t w ill b e pa ya b le w ith ou t interest. T h e y w ill be issued in bearer fo rm on ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ). T e n d e rs w ill b e receiv ed at F ed eral R e serv e B anks and B ra n ch es up to the c lo s in g h our, on e-th irtv o ’ c lo ck p.m ., E astern S ta n d a rd tim e, M on d a y , January 28, 1957. T e n d e rs w ill n ot b e receiv ed at th e T r e a s u ry D ep a rtm en t, W a s h in g t o n . E ach ten der m u st be fo r an even m u ltiple o f $1,000, and in the ca se o f com p etitive tenders the price offered m u st be exp ressed on the basis o f 100, w ith n ot m o re than th ree decim als, e.g., 99.925. F raction s m a y n ot be used. It is u rg ed that ten ders be m ade on the p rin ted fo rm s and forw a rd ed in the special en velop es w h ich w ill be supplied b y F ed eral R e serv e B anks o r B ran ches o n a p p lica tion th erefor. O th e rs than b a n k in g in stitu tions w ill n ot be perm itted to subm it tenders ex cep t for th eir ow n a ccou n t. T en d ers w ill be receiv ed w ith o u t d ep o sit fr o m in corp ora ted banks and trust com p a n ies and fr o m resp on sib le and re co g n iz e d dealers in invest m en t securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y p a ym en t o f 2 p ercen t o f the face a m ou n t o f T r e a s u ry bills applied fo r, unless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f pa ym en t b y an in corp ora ted b a n k o r trust com p a n y . Im m e d ia te ly after th e clo s in g h ou r, ten ders w ill be o p en ed at the F ed eral R e serv e B anks and B ra n ch es, fo llo w in g w hich pu b lic a n n ou n cem en t w ill be m ade b y th e T rea su ry D epa rtm en t o f the a m ou n t and p rice ran ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill be a d vised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T r e a s u ry ex p re s sly reserves the righ t to a cce p t o r re ject a n y or all tenders, in w h ole o r in part, and his a ction in a n y such resp ect shall b e final. S u b ject to th ese reserva tion s, n o n com p etitive tenders for $200,000 o r less w ith ou t stated p rice fro m any on e b idd er w ill be a ccep ted in full at th e a vera ge price (in th ree decim a ls) o f a ccepted com p etitiv e bids. Settlem ent fo r a ccep ted ten ders in a ccord a n ce w ith th e b id s m u st be m a d e o r c o m p le te d at the F ed eral R eserve B a n k on January 31, 1957, in cash o r o th e r im m ediately available fu n d s o r in a like fa ce a m ou n t o f T r e a s u ry bills m a tu rin g J anu ary 31, 1957. Cash and e x ch a n g e ten ders will receive eq u a l treatm en t. Cash ad ju stm en ts w ill be m ade fo r d ifferen ces b etw een th e pa r value o f m a tu rin g b ills a cce p te d in ex ch a n g e and the issue p rice o f the n ew b ills. T h e in co m e derived fro m T r e a s u ry bills, w hether interest o r gain fr o m the sale o r oth er d isp osition o f th e bills, d oes n ot have a n y e x e m p tion , as such, and loss fr o m th e sale o r oth er d isp osition o f T r e a s u ry bills d oes n ot have a n y special treat m en t, as such, u nder the Internal R even u e C o d e o f 1954. T h e bills are su b ject t o estate, inheritance, g ift o r oth er excise taxes, w h eth er Federal o r State, but are exem p t fr o m all taxation n o w o r h erea fter im p osed on the principal o r in terest th ereof b y an y State, o r a n y o f the p oss e s s io n s o f the U n ited States, o r b y a n y lo ca l ta x in g a u th ority. F o r p u rp o s e s o f taxation the am ou n t o f d isco u n t at w h ich T rea su ry bills are o rig in a lly sold b y th e U n ited States is con sid ered to be interest. U n der S e ctio n s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C od e o f 1954 the a m ou n t o f d iscou n t at w h ich bills issued hereunder are so ld is n o t co n sid ered to a ccru e until such bills are sold, red eem ed o r oth erw ise disp osed of, and such bills are exclu ded fr o m co n sid e ra tio n as capital assets. A c c o r d in g ly , the o w n e r o f T r e a s u ry bills (o th e r than life in su ra n ce co m p a n ie s ) issued h ereun der need in clu d e in his in com e ta x return o n ly the differen ce betw een the p rice paid fo r such bills, w hether on original issue o r o n subsequent purchase, and the a m ou n t actu a lly receiv ed either u p on sale o r red em ption at m aturity d u rin g the taxable yea r fo r w h ich the return is m ade, as ord in a ry ga in o r loss. T r e a s u ry D epa rtm en t C ircu lar N o . 418, R evised , and this n otice, p rescrib e the term s o f th e T rea su ry bills and g o v e rn the co n d itio n s o f their issue. C op ies o f th e circular m a y be ob ta in ed fr o m a n y F ed eral R eserve B a n k o r Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, January 28, 1957, at the Securities Department o f its H ead Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ Tender fo r Treasury Bills.” Tenders may be submitted by telegraph, sub ject to written confirmation; they may not be submitted by telephone. Payment fo r the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A l f r e d H a y e s , President. Results o f last offering o f Treasury bills (9 1 -day bills dated January 24, 1957, m aturing A pril 25, 1957) T o ta l a pplied fo r ...$2,416,372,000 T ota l a cce p te d .........$1,600,012,000 (in clu d e s $314,204,000 entered on a n on com petitive basis and a ccep ted in full at the average price show n b e lo w ) R a n g e o f a ccep ted com petitive b id s: E quivalent rate H ig h ........... 99.231 a p p rox . 3.042% E quivalent rate L o w ........... 99.213 a p p rox. 3.113% E quivalent rate A v e ra g e . . . 99.220 a p p rox . 3.085% o f discou nt per annum o f discou nt per annum o f discou nt per annum (51 p ercen t o f the am ou nt b id fo r at the low price w as a cce p te d ) F ederal R eserv e D istrict B o s to n ................ N e w Y o r k ......... P h ila delp h ia . . . C l e v e l a n d ........... R ic h m o n d ......... A t l a n t a ................ C h ica g o .............. St. L o u is ........... M in n ea p olis . . . K a n sa s C ity . . . D allas .................. San F r a n cis co . Total A pplied f o r $ 37,963,000 1,736,419,000 37,848,000 78,301,000 20,781,000 35,187,000 235,784,000 31,425,000 12,621,000 36,906,000 45,899,000 107,238,000 Total A ccepted $ 27,963,000 1,006,379,000 22,848,000 73,001,000 20,781,000 33,687,000 184,264,000 31,375,000 12,621,000 36,906,000 43,699,000 106,488,000 $2,416,372,000 $1,600,012,000 ( ovek ) 36 T IM P O R T A N T — I f you desire to bid on a com petitive basis, fill in rate per 100 and m aturity valu e in paragraph headed "C om petitive Bid.” I f y o u desire to bid on a noncom petitive basis, fill in on ly the m aturity valu e in paragraph headed "N on com p etitive Bid.** D O N O T fill in both paragraphs on one fo rm . A separate tender m ust be used fo r each bid, except that banks subm itting bids on a com petitive basis fo r their ow n and their customers* accounts m ay subm it one tender fo r the total am ount bid at each price, provided a list is attached showing the name o f each bidder, the am ount bid fo r his a ccou n t, and method o f paym ent. Forms fo r this purpose w ill be furnished upon request. N o .................................. TENDER FOR 91-D A Y TREASURY BILLS Dated January 31, 1957 T o F ed eral R eserve B a n k of N e w Y Fiscal A gent o f the United States. M aturing M ay 2, 1957 Dated at ork, 1957 CO M PE TITIV E BID N O N C O M PE TITIV E BID Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on January 24, 1957, as issued by the Treasury Department, the Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f the public notice on January 24, 1957, as issued by the Treasury Department, the undersigned offers a noncompetitive tender undersigned o f f e r s .........................................* fo r a (Rate per 100) total amount o f $ .................................... (maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settle ment therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : □ By surrender o f maturing Treasury bills for a total amount o f $ ............................................... (Not to exceed $200,000) (maturity value) o f the Treasury bills therein described, at the average price (in three decimals) o f accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : O By surrender o f amounting to ................... $---------------------------------- amounting to □ □ B y cash or other immediately available funds maturing Treasury bills ................... $______________________ By cash or other immediately available funds *Price must be expressed on the basis of 100, with not more than three decimal places, for example, 99.925. The Treasury bills for which tender is hereby made are to be dated January 31, 1957, and are to mature on M ay 2, 1957. This tender will be inserted in special envelope marked “ Tender f o r Treasury Bills.” N a m e o f B id d er ................................................................. (Please print) B y. (Official signature required) (Tide) Street A d d re s s (City, Town or Village, P. O. No., and State) I f this ten der is su b m itted b y a ba n k fo r th e a cco u n t o f a cu stom er, in dicate th e cu stom er’ s nam e o n lin e b e lo w : (Name of Customer) (City, Town or Village, P. O. No., and State) IM P O R T A N T IN ST R U C T IO N S: 1. N o ten der fo r less than $1,000 w ill be con sid ered , and ea ch ten der m u st be fo r an even m ultiple o f $1,000 (maturity value). 2. I f th e p erson m a k in g th e ten der is a corp ora tion , the ten der sh ou ld be sign ed b y an officer o f the c o rp o ra tio n a u th orized t o m a k e the tender, and the sig n in g o f the ten der b y an o ffice r o f the corp o ra tio n w ill be con stru ed as a rep resen ta tion b y him th at he has been s o au th orized . I f th e ten d er is m a d e b y a p a rtn ersh ip , it sh ou ld be sign ed b y a member o f th e firm, w h o sh ou ld sign in th e fo r m “ .................................................................................................. t a cop artn ersh ip, b y ........................................................................................................................................., a m em b er o f th e firm .” 3. T e n d e r s w ill b e re ce iv e d w ith ou t d e p o s it fr o m in co rp o ra te d banks and trust co m p a n ie s and fro m r e s p o n sible a n d r e c o g n iz e d dea lers in in vestm en t secu rities. T e n d e rs fr o m oth ers m u st be a cco m p a n ie d b y pa ym en t o f 2 p ercen t o f the fa c e a m ou n t o f T rea su ry bills applied for, unless the ten ders are a ccom p a n ied b y an exp ress guaranty o f paym ent by an in co rp o ra te d bank o r trust com p a n y . 4. I f the language o f this tender is ch a n ged in any resp ect, w h ich , in the op in ion o f the Secretary o f the T re a s u ry , is m aterial, th e ten der m a y be disregarded. Paym ent b y cred it through Treasury T a x and Loan A cc o u n t w ill n ot b e perm itted. T E N T B — 1387-a (o v e r )